Dhaka, Bangladesh (BBN) – The board of directors of Bangladesh Bank (BB), the country’s central bank, has deferred a proposal to issue licenses for new private commercial banks, officials said.
The decision came at a meeting, held in the central bank Wednesday with the BB Governor Atiur Rahman in the chair.
“The issue has been discussed but no decision taken at the meeting,” a BB senior official told BBN in Dhaka without elaborating.
Talking to the BBN, another BB official said the central bank has provided a study report along with the existing Bangladesh Bank Order and Bank Company Act 1991 to the directors for taking a concrete decision in this connection.
“The Board may take a final decision on establishment of new commercial banks in its next meeting which will he held in September 2011,” the central bank official hinted.
The central bank has placed a study report to its Board meeting seeking decision on issuing licenses for new commercial banks.
The study report was prepared incorporating necessary information including the growth of banking industry considering the country’s population, another BB official said.
The central bank of Bangladesh has already finalized a fresh guideline, spelling out details that the intending sponsors will have to follow while filing applications for setting up new banks.
“We’ll publish the guideline along with advertisement inviting fresh applications from interested entrepreneurs to establish new banks, if the board gives green signal on the issue,” the BB official added.
Currently, a total of 47 commercial banks are in operation in Bangladesh.
BBN/SSR/AD-24Aug11-9:24 pm (BST)